Calculate the profit-maximizing monopoly price and quantity

Reference no: EM13218909

Suppose that a monopolists market demand is given by P = 100 - ?2Q and that marginal cost is given by MC = Q/2.

a)Calculate the profit-maximizing monopoly price and quantity.

b)Calculate the price and quantity that arise under perfect competition with a supply curve P = Q/2.

c)Compare consumer and producer surplus under monopoly versus marginal cost pricing. What is the deadweight loss due to monopoly?

d)Suppose market demand is given by P = 180? - 4Q. What is the deadweight loss due to monopoly now? Explain why this deadweight loss differs from that in part (c).

Reference no: EM13218909

Questions Cloud

What is the marginal revenue at the price computed : Unique creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC=$100,000+20Q a) What is marginal cost for Unique b) If the price elasticity of demand for Unique is current..

Explanations of violence : Explain, in detail, the two major categories in which criminologists use to explain violence. Second, discuss, in detail, the eight most widely used explanations of violence.

Researcher interested in relationships developed : A researcher interested in relationships developed a questionnaire that measures the degree of affection adult men feel for their fathers. She has found that for the general population the distribution is skewed to the right, the mean degree of affec..

Target market for the 3m greptile grip golf glove : What are the characteristics of the target market for the 3M Greptile Grip golf glove? What are the key points of difference of the 3M Greptile Grip golf glove when compared to competitors products, such as FootJoy and Nike? Substitute products such ..

Calculate the profit-maximizing monopoly price and quantity : Suppose that a monopolists market demand is given by P = 100 - ?2Q and that marginal cost is given by MC = Q/2. a)Calculate the profit-maximizing monopoly price and quantity. b)Calculate the price and quantity that arise under perfect competition wit..

Find gillettes profit-maximizing price and quantity : Imagine that Gillette has a monopoly in the market for razor blades in Mexico. The market demand curve for blades in Mexico is P = 968-20Q, where P is the price of blades in cents and Q is annual demand for blades expressed in millions.

Determine it is in fact a training problem : You are the supervisor of a group of employees whose task is to assemble disk drives that go into computers. You find that quality is not what it should be and that many of your group’s devices have to be brought back and reworked

Which set of data illustrates aggregate supply : GDP Price Level Real GDP Price Level Real GDP 110 275 100 200 110 225 100 250 100 225 100 225 95 225 100 250 95 225 90 200 100 275 90 225 a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville

Philosophers in the western tradition : Idnetify major philosophers in the western tradition that were primary contirbutors to the formation of psychology as a dicipline

User Account

All Pages